1. Put your teen driver on your policy, rather than purchasing a separate policy. Adding him to your policy will allow you to take advantage of premium discounts (such as those for buying multiple policies from the same company or insuring multiple cars), which can help to reduce the overall cost of your policy. An exception to this recommendation is if you have a poor driving record that has driven up the cost of your personal auto insurance. In that case, discuss you situation with your insurance agent, since it may make sense to get a separate policy for your child.
2. Be sure that you have adequate coverage. You may want to boost your auto policy’s liability limits when you add a teen drive and, if you don’t already have an umbrella liability insurance policy, you should consider purchasing one. Umbrella policies are relatively inexpensive relative to the amount of liability coverage purchased.
3. If your child gets good grades, ask your auto insurance company about a good student auto insurance discount. You may be able to save about 10% if your teen has a grade point average of 3.0 or better.
4. Find out if your insurer offers a discount for completion of a teen driver safety course. If so, enroll your child and forward documentation of his successful completion of the course to your insurance company. Even if it doesn’t result in a premium discount, taking a driver safety course is a good idea for any new teen driver.
5. Skip the sports car and, instead, get your teen a car with high safety rating. Also, avoid cars on the most stolen car list. Check with you insurance company to find out the premiums for various models before you buy. Your choice of car can save you money on insurance and reduce your stress level about your child’s safety at the same time.
6. Your teen’s clean driving record can pay off in safe-driving auto insurance discounts. Be sure that your child is well versed in the driving laws and knows defensive driving methods.Also, set a good example for your teen by being a responsible driver yourself. Do not allow your teen to talk on a cell phone or to text while driving, require seat belt use, and limit the number of passengers, especially when your child is a novice driver. Demand that your teen obeys the rules and respond firmly to any infractions. Ride with your teen driver often so that you can see how she performs behind the wheel.